Levi’s sales get Carolyn Bessette ‘Love Story’ boost; stock up 12%

Iconic denim maker Levi Strauss’ latest quarterly results hid a ‘Love Story’ within.

As the denim brand reported its strongest quarterly revenue growth in nearly four years, with consumers shrugging off tariff-driven price increases, the CEO said one of its core styles was regaining popularity after featuring in a hit FX and Hulu show on the romance between John F. Kennedy Jr. and Carolyn Bessette.

“Another great example of the organic strength of our core is the 25% increase in our iconic 517s, which were famously worn by Carolyn Bessette and prominently featured in the popular show ‘Love Story,'” Levi’s CEO Michelle Gass said on a late Tuesday earnings call.

The company’s bottoms segment rose 7% in the quarter, driven by fresh product offerings and updated takes on its core styles, Gass said during a call with analysts.

Shares of Levi Strauss were raging on Wednesday, up by about 12%.

Strong earnings driven by DTC growth

For the fiscal first quarter ended March 1, Levi Strauss reported adjusted earnings per share of 42 cents, up from 38 cents a year earlier and ahead of analyst expectations of 37 cents.

Revenue increased 14% to $1.74 billion, exceeding forecasts of $1.65 billion.

Growth was supported by strong performance across both direct-to-consumer and wholesale channels.

Sales through the company’s own stores and online platforms rose 16%, while wholesale revenues increased 12%.

Operating margin, however, declined to 11.4%, reflecting higher tariff-related costs and increased spending on advertising.

Pricing power offsets tariff impact

Despite facing tariffs of roughly 10% on imports into the United States, Levi Strauss has managed to maintain demand while raising prices and reducing discounting.

“Demand hasn’t been affected (by) higher pricing, and we see benefits becoming more fully realized starting in F2Q,” said Rick Patel, analyst at Raymond James.

Analysts at Jefferies also pointed to resilient demand trends in the first half of the year, noting that consumers have remained largely undeterred by higher prices.

The company’s focus on cost control, including streamlining product offerings and managing headcount, is expected to support margins over time.

Outlook lifted amid cautious optimism

Levi Strauss raised its full-year guidance, projecting fiscal 2026 net revenue growth of 5.5% to 6.5%, compared with its earlier forecast of 5% to 6%.

The revised outlook broadly aligns with market expectations.

The upgrade reflects confidence in continued demand across denim categories and the strength of its direct-to-consumer business.

However, analysts noted that the company’s outlook, particularly for the US market, remains measured.

This suggests potential risks from macroeconomic uncertainty, including higher fuel prices linked to geopolitical tensions.

“Levi’s better-than-expected results and upbeat commentary stand out in the context of macroeconomic uncertainty and concerns about discretionary spend,” said Michael Gunther of Consumer Edge.